When trying to run appengine program from command line (psae), you are getting this message
“Could not sign on to database xxxx with user yyyy for app engine program”
One possible reason is that psae needs database name in upper case. If you are using lower case name then the above message appears.
Also PS_SERVER_CFG must contain the fully qualified name of a correctly configured Process Scheduler PSPRCS.CFG file
psae -CT ORACLE -CD dbname-CO userid -CP password -R runcontrolid -I 0 -AI <appengine progname>
Also When PeopleSoft Application Engine runs from the command line, it resolves %PS_SERVDIR% to the value of the environment variable PS_SERVDIR instead of the parent directory of a Process Scheduler configuration.